Bill > A2077

Introduced Session

This bill provides certain accommodations to businesses participating in the Business Employment Incentive Program, the Business Retention and Relocation Assistance Grant Program, the Grow New Jersey Assistance Program, and the Urban Transit Hub Program for the 2024 tax period and subsequent tax periods. During the COVID-19 public health emergency, the New Jersey Economic Development Authority (EDA) implemented certain accommodations for businesses that had previously been approved awards under these programs. As part of these accommodations, the EDA waived the requirement that a full-time employee employed by a business participating in any of the programs is to spend at least 80 percent of the employee's time at the qualified business facility to be eligible for an award under the program. The New Jersey Economic Recovery Act of 2020 lowered the requirement for spending time at the qualified business facility to 60 percent of the employee's time, as provided by law. Due to the permanent impacts of COVID-19, starting in the 2024 tax period and for all subsequent tax periods, this bill allows businesses to waive the requirement that a full-time employee who is employed by the business is to spend at least 60 percent of the employee's time at the qualified business facility. A business that makes such an election is required to satisfy the following criteria: (1) to qualify as an eligible position or full-time job, the business must demonstrate to the authority's satisfaction that the employee spends at least 80 percent of the individual's work time in this State and that the eligible position requires an employee to have the employee's primary place of work in this State, which need not be at the qualified business facility for the business to receive the full award amount; (2) not less than 80 percent of the aggregate withholdings of new and retained full-time jobs at the business are to be subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.; and (3) following the receipt by the business of its tax credit certificate or tax credit transfer certificate for such tax period that an election is made, the business shall make a payment of an amount equal to five percent of the amount of tax credit the business receives for such tax period, which payment shall be made to the authority, and which payment the authority shall hold and make available for the provision of loans, guarantees, equity investments, and grants, or other forms of financing to support small business and downtown or commercial corridor activation activities within the municipality in which the qualified business facility is located, as may be designated by the chief executive officer of the authority. The bill also provides that a business that receives a tax credit award through the Emerge Program must demonstrate to the New Jersey Economic Development Authority that a full-time employee spends at least 80 percent of their work time in this State and that the eligible position requires an employee to have the employee's primary place of work in this State, which need not be at the qualified business facility, for the business to receive the full tax credit award.

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Eliana Pintor Marin (D)*, 

Withdrawn Because Approved P.L.2023, c.261. (on 01/09/2024)

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